Foreign tourist boom lifts regional convenience store sales

Sokcho draws North American shoppers; Busan sees surge in Chinese-speaking visitors

Foreign customers shop at a GS25 convenience store. [GS25]
Foreign customers shop at a GS25 convenience store. [GS25]

Foreign tourists have emerged as major spenders at regional convenience stores across South Korea. As demand that once concentrated in Seoul spreads to Busan and Gangwon Province, sales at local outlets are climbing — with North American visitors driving consumption in Sokcho and Chinese-speaking tourists leading the way in Busan.

About 3.43 million foreign visitors came to Busan between January and August this year, according to the Busan Tourism Organization. In August alone — the peak season — arrivals reached 506,946, a 45.9 percent jump from the same month last year. Chinese and Taiwanese nationals each accounted for 20.9 percent of visitors during the January–August period, with Chinese tourist numbers up 88.2 percent year-on-year and Taiwanese visitors up 60.5 percent. Cumulative spending over the same period reached 872.4 billion won ($652 million).

Gangwon Province is also seeing a rise in foreign visitors. About 2.62 million foreign tourists visited the province from January through August, up 17 percent from the same period last year and a record high for that stretch, according to the Korea Tourism Organization. Foreign credit card spending in the region totaled 51.1 billion won over the period, an increase of 16.1 billion won from last year. American visitors accounted for the largest share of spending by nationality, at 26.1 percent.

The influx is showing up in convenience store sales figures. GS25 reported that its sales to North American customers at Sokcho stores rose 120.5 percent in the July–September period from the same period last year, while sales to Chinese-speaking customers at Busan stores surged 137.5 percent. In Sokcho, European visitors ranked second in transaction volume after North Americans, but in Busan's Haeundae-gu and Suyeong-gu, Chinese-speaking customers topped the transaction count. Chinese-speaking shoppers also led overall sales across Busan.

Top-selling products varied by region. In Sokcho, banana-flavored milk, cups of ice, canned beer, marinated eggs, shine muscat grapes, bottled water and sports drinks all ranked among the best sellers. Beverages — energy drinks in particular — stood out as a category, a pattern that aligns with the well-developed energy drink market in North America.

In Busan, Greek yogurt, banana milk, xylitol candy and Dubai Chewy Cookies were among the most popular items, with dairy products and desserts dominating the list. Xylitol candy has recently become a hit among Chinese tourists visiting the city.

Shopping hours also differed by location. In Sokcho, the 6–9 p.m. window accounted for roughly 40 percent of sales, followed by the 3–5 p.m. and 6–10 a.m. slots. In Busan's Haeundae, the evening hours generated about 30 percent of sales, with the 10–11 p.m. slot coming in second. The late-night activity in Haeundae is attributed to the area's active nightlife — including clubs and late-night dining — which keeps convenience store foot traffic going well past midnight.

Other convenience store chains reported similarly strong gains. CU's foreign customer sales for July through September rose 69.4 percent in Sokcho, 62.6 percent in Gangneung and 133.3 percent in Busan compared with the same period last year. Seven-Eleven posted sales growth of 87 percent in Gangwon Province and 341 percent in Busan over the same stretch.

E-mart24, measuring by Alipay, WeChat Pay and Line Pay transaction data, saw foreign customer sales at its Busan stores climb 228 percent in July through September from a year earlier, while Gangwon Province stores recorded a 45 percent increase. The sharp rise in Busan reflects the heavy presence of Chinese-speaking tourists, who are the primary users of Alipay and WeChat Pay.

"As the number of foreign tourists grows, the mix of products selling well at regional convenience stores is shifting based on visitors' nationalities and travel purposes," an industry official said. "It is becoming increasingly important to tailor payment options and product lineups to the spending habits of tourists in each area."


siuu@heraldcorp.com